The performance of first-lien mortgages in the federal banking system improved during the second quarter of 2022, according to an OCC report issued today.
The OCC Mortgage Metrics Report showed that 97% of mortgages were current and performing at the end of the quarter, when compared with 95% a year earlier. The proportion of seriously delinquent mortgages-mortgages which are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or even more days gone by due-was 1.5% in Q2, when compared with 1.8% within the prior quarter and 3.8% a year ago.
Servicers initiated 11,015 new foreclosures in Q2, a decrease in the prior quarter along with a year earlier, but was similar to pre-COVID-19 pandemic foreclosure volumes. Servicers completed 28,109 modifications, a loss of 33.7% in the previous quarter. From the modifications, 78.2% reduced borrowers' monthly obligations and 95.6% were modifications that included multiple actions affecting the affordability and sustainability of the loan, for example an interest rate reduction and a term extension.
The first-lien mortgages included in the OCC's quarterly report comprise 22% of residential mortgage debt outstanding in the United States or approximately 12.2 million loans totaling $2.7 trillion in principal balances.
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